Which individuals are required to sign nondisclosure and non-competition agreements for a Goldfish Swim School franchise?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Certain individuals with access to trade secrets or other confidential information, including your owners, shareholders, officers, directors, partners, members, if you are a corporation, limited liability company or other business entity, and your Designated Manager(s), on-site general manager if different from the Designated Manager, other managers of the Franchised Swim School, and executives are required to sign nondisclosure and non-competition agreements in a form the same as or similar to the Nondisclosure and Non-Competition Agreement attached to the Franchise Agreement. We will be a third-party beneficiary with the right to enforce those agreements. You must ensure that your employees with access to Confidential Information execute a Nondisclosure Agreement in the form similar to the form attached to the Franchise Agreement to prevent your employees from using or disclosing our Confidential Information after their employment terminates.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 51–52)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, certain individuals are required to sign nondisclosure and non-competition agreements to protect the franchisor's confidential information and trade secrets. These individuals include the franchisee's owners, shareholders, officers, directors, partners, and members (if the franchisee is a corporation, limited liability company, or other business entity). Additionally, the Designated Manager(s), the on-site general manager (if different from the Designated Manager), other managers of the Franchised Swim School, and executives must also sign these agreements. These agreements are in a form similar to the Nondisclosure and Non-Competition Agreement attached to the Franchise Agreement.
The purpose of these agreements is to prevent the unauthorized use or disclosure of trade secrets and confidential information, which are crucial for maintaining the competitive advantage and operational standards of the Goldfish Swim School system. The franchisor is a third-party beneficiary of these agreements, giving them the right to enforce them directly. This ensures that the confidential information remains protected even if the franchisee fails to enforce the agreements.
Furthermore, franchisees are responsible for ensuring that their employees with access to confidential information also execute a Nondisclosure Agreement. This agreement is similar to the one attached to the Franchise Agreement and aims to prevent employees from using or disclosing confidential information after their employment terminates. By requiring these agreements, Goldfish Swim School aims to safeguard its proprietary information and maintain consistency across all franchise locations.